Spain’s Sareb shortlists investors for
By Miles Johnson in Madrid and Ed Hammond in New York
Sareb, the Spanish state-organised “bad bank”, will this week select
a shortlist of international investors for a landmark property sale
that it hopes will pave the way for at least five other transactions
Sareb, which was established late last year to take €90bn of real
estate assets and soured loans off the books of Spain’s bailed out
banks, will by Friday narrow down a list of 10 offers for a package
of properties codenamed “Project Bull”, people close to the deal
The sale of a portfolio, composed of between 700-1,000 mostly costal
residential property in the regions of Andalucia and Valencia, is
being viewed by real estate investors as a watershed moment in
Spain’s effort to purge the legacy of its decade-long property
bubble. Unlike other European countries, most notably Ireland, Spain
has been slow to begin the process of offloading distressed
“The significance of them bringing this first portfolio to market
cannot be under estimated,” said one private equity investor focused
on Spain, “if they get it away, it could really light the touchpaper”.
Among the investors that have lodged bids include Lone Star and
Apollo, with Sareb, which has sold 550 of its near 50,000 properties
in the first three months of this year, hoping to accelerate sales
in at least five more similar deals by the end of 2013.
A notable aspect of the transaction, on which KPMG is advising Sareb,
is that it will be the first time a special low-tax vehicle, known
in its Spanish initials as a FAB, is provided to international
investors buying assets from the bad bank.
The FAB structure, which is taxed at only 1 per cent, is likely to
involve Sareb retaining a stake in the vehicle used for “Project
Bull”, allowing it co-investing with any private equity fund that
buys the assets.
The low tax rate provided by the Spanish government to encourage
foreign investors to buy Sareb assets is also likely to be viewed as
controversial in Spain, where many of the properties held by the
state-run asset manager were repossessed by rescued banks from
citizens in financial distress.
The portfolio, the size of which has been reduced since the start of
the process, is expected to be valued at between €80m-€100m,
depending on how the cash flows from the assets, capital structure
of the FAB, and the amount of equity retained by Sareb. If valued at
€100m this would represent a 50 per cent reduction on the registered
value of the assets before they were transferred into Sareb.
Sareb’s strategy is to sell assets as soon as possible, in an
attempt to provide a pricing floor for other investors and help
restart a broader recovery in the housing market.
Viva Espana! Brits boost the Spanish
In an article titled “Return of the Cranes”
published by OPP (Overseas Property Professional, May 2013) John
Howell reports that new cranes have arrived at various site
locations across Spain, and others that have been standing idle for
years are now back in use – indicating that construction is
commencing once again. Speaking to Des Rowson from DLR Properties he
reports that “buyers are back, particularly at the lower end of the
market. Prices are creeping up. We are finding it difficult to find
good inventory at the right price.” These early indicators imply
that there is increasing demand for investment in the country –
which is driving developers to start and indeed re-start once
Split by region, it is mainly the coastline areas such as Costa
Blanca and the Costa del Sol that are seeing a resurgence in
overseas investment as Brits migrate to Spain for holiday and
retirement homes in the sunshine.
Overseas property investment in Spain is expected to increase, as in
July new rules will come into effect that state non-EU nationals
that spend more than €500,000 will get the automatic right to
residency in the country in a bid to boost investment.
This was our quote from October 15th 2011 which still applies today!
The Times, Saturday
October 15. 2011
Does Eurozone crisis
mean time is right to buy a holiday home?
Mark Bridge reports.
Experts say that
properties with tourist amenities but not purpose built offer good
value in Spain – another hard hit economy, for example, Des Rowson
of DLR Properties Overseas, says that a three bedroom houses in
picturesque villages and small towns inland of Andalusian coast,
with small expat communities start at 100,000 euros to 150,000 euros.
Rowson says that while values in the ugliest investment developments
have halved in the last three years, property in established holiday
resorts have experienced nearer a 20% reduction and are looking
nicely priced for lifestyle buyers – with one bedroom apartments
from 65,000 Euros and villas from 130,000 euros in popular resorts
on the Costa Blanca within range of Alicante and Murcia.
Tony Le Marchant,
who already owns several holiday apartments in Spain, purchased
between 1999 1nd 2008, believes that now is a “buyers market” and a
good three to five year opportunity, but cautious that the rental
market is limited and that it is difficult to sell. Mr. Le Marchant
is happy to sit tight as the properties were bought as part of his
Part of full article
in Times Money.
28 July 2012
Spanish living costs are considerably lower than the UK according to the
Post Office's Family Holiday Report 2012
27 july 2012
Spain has become the top of the list
again for clients looking to purchase, buy before the taxes increase
and while the euro is 1.2765 +£1 stg.
14 July 2012
Information from Spain seems more
positive, our problem is we need more cheap propertgies to sell.
Buyers are looking for properties under 75k.
Please contact us for further information.
Golf Property Spain
Spanish Property for Sale
Property for Sale Spain